Help us make better tools for you!. Read more (Published: 2017-01-12)

VAL - Valspar Corporation (The) Fri 13'th Jan 2017

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Strong Buy Candidate

Score: 6.82

#25 of 5193
Trend:
MV Long:
MV Short:
Pivot:
Volume:
MACD:
Accuracy: 70.00%
Risk: Low
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Stock analysis for Fri 13'th Jan 2017 (Updated daily)

Buy candidate since 2017-01-10

Gain 2.27%

Valspar Corporation (The) Stock Analysis


Valspar Corporation (The) gained 0.68% in the last trading day rising from, USD 106.77 to USD 107.50. , and has now gained 5 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. The price has risen in 6 of the last 10 days days and is up by 3.64% over the past 2 weeks. Volume also increased in the last day along with the price, which is a positive technical sign, and ,in total, 170 397 more shares traded than the day before. In total there were 542 042 shares were bought and sold for approximately USD 58.27 million.

Trend

Valspar Corporation (The) has broken the horizontal trend up. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately. USD 106.95 is considered to be a "second chance" to hit a potential runner. It is, however, important that volume does follow the price as false breaks may appear and it may move back into the horizontal trend. Based on the rectangle-formation theory the stock is predicted to reach USD 114.68 sometime during the next 3 months.

Signals

Only positive signals in the chart today. Valspar Corporation (The) holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at USD 105.38 and USD 103.45. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday December 22, 2016, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.

The stock had a Golden Star Signal* on Wednesday December 07, 2016 in the short-term chart.

* Golden Star Signal* is when the short-term moving average, the long-term moving average, and priceline meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.

Relative Strength Index (RSI)

RSI14 is 91 and the stock is extremely overbought on RSI14, but may also continue to gain. Some stocks see their best performance while being overbought, but very seldom does RSI remain so high for a long time without short corrections. Risk has therefore increased and larger daily movements can be expected for the next couple of days.

Support & Resistance

On the downside the stock finds support just below today's level from accumulated volume at USD 101.32 and USD 99.60 There is no resistance from accumulated volume above today's level and given the right condition the stock may perform very well during the next couple of days.

There is natural risk involved when a stock is testing a support level, as if this is broken the stock may fall to the next support level. In this case Valspar Corporation (The) finds support just below today's level at 101.32. If this is broken the next support from accumulated volume will be at 99.60 and 97.73.

Risk

This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day the stock moved USD 1.11 between high and low, and this equals 1.04%. For the last week, the stock has had a daily average volatility of 1.19%.

The stock is extremely overbought on RSI14 (91). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Our recommended stoploss: USD 102.21 (-4.92%) ( Criterias: risk and break of trend)

Evaluation

Valspar Corporation (The) holds several positive signals and has broken the horisontal trend up. As is the stock is in a very good technical shape, we therefore consider it to be a good choice at current levels and are expecting further gains during the next 3 months.

Strong Buy Candidate


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